All Topics / General Property / Cash poor but equity rich – can I start?

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  • Profile photo of Bel345Bel345
    Participant
    @bel345
    Join Date: 2022
    Post Count: 0

    My PPOR is worth 700K and I owe 350K (high income, bought property in 2019). If I open a family trust to separate personal from financial, can I use my equity to start buying positive geared properties? Or does that defeat the purpose of the family trust? I’m keen to get started but don’t want to effectively handcuff my potential with silly decisions. Thanks in advance for your insight.

    Benny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,416

    Hi Bel,

    Sounds like you are ready to move on – and it is great that you are checking out options ahead of jumping in.   Right off, there’d be more info required before being able to offer sensible options.  so, if you would, have a crack at answering the following questions.

    1.  What are your long-term goals?  i.e. are you considering further investments in property, even perhaps to make a career of property investing?  As you have high income, is more income your focus right now, or would a growth property suit you better?

    2.  Is there something about a trust that has you wanting to utilise one?  They can soak up a fair amount of time and dollars, so beware of that.

    3.  Positive-geared sounds like a sensible way to go if wanting to add more to a portfolio – would these be regional areas or suburbia?  Each has its own areas to consider (i.e. traps).

    4.  Separating personal monies from investing monies is for sure a good way to go, but (to my knowledge) that can be done without using a Trust.  Separate bank accounts can do that.  Read up on Offset Accounts too.

    Do come back with whatever extra info you don’t mind sharing, and let’s see what can be done,

    Benny

    Profile photo of JaxonJaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 284

    Hey Bel,

     

    you can if you choose to buy/structure that way potentially.

    also you could use debt recycling & other strategies to maximize the deductions potentially moving forward.

    There are heaps of answers on forums like this to help answer.

     

    Benny’s questions are great & show how detailed this can become to work all aspects out

     

    Wish you all the best :)

     

    Disclaimer: all the above is general in nature or factual. it does not take into account your situation & may not be right for you.

     

     

     

     

    Jaxon | Jaxon Avery – Financial Adviser
    http://www.jpafinancialservices.com.au
    Email Me | Phone Me

    JPA Financial Services Pty Ltd

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